Apple reportedly cuts down iPhone XR production as demands for older models rise

Back in September, Cupterino-based tech giant Apple announced three new iPhones – the iPhone XR, the iPhone XS, and the iPhone XS Max. The iPhone XR is the cheapest of all with a starting price of $749, however, if the latest report is to be believed, things don’t seem to be going all that well for Apple as the company has cut down on production of the iPhone XR.

According to a report by Nikkei Asian Review, the iPhone XR isn’t doing well in terms of sales which has forced Apple to cut down on its production. The tech giant has reportedly ordered its suppliers – Foxconn and Pegatron – to halt plans for additional production lines dedicated to the XR.

“For the Foxconn side, it first prepared nearly 60 assembly lines for Apple’s XR model, but recently uses only around 45 production lines as its top customer said it does not need to manufacture that many by now,” a source familiar with the matter said.

Well, this essentially means that Foxconn will be producing 1,00,000 fewer units daily, which is 20 to 25% less than initially planned. Same is the case with Pegatron who have suspended their plans to ramp up the production of iPhone XR in their production lines.

The reason for Apple reducing the production of iPhone XR is reduced demand – thanks to its price tag. This has made customers buy last year’s iPhone 8 and iPhone 8 Plus that are cheaper and are still a viable option. This has also resulted in increased demand of the iPhone 8 and 8 Plus, so much so that Apple’s suppliers will be producing five million more units of iPhone 8 and 8 Plus combined, taking the total to 25 Million units.

That said, out of all three new iPhone models that Apple launched this year, only the iPhone XS Max – which is the most expensive of the three – has a slightly better demand.